Price up on weak dollar and strong demand
Stocks continue to outshine gold and silver when it comes to adding to investors' wealth by giving 8 per cent return so far this year.
Gold prices plunged to over ten months low by losing Rs 505 to Rs 29,470 per ten gram in the national capital on Thursday on frantic selling by stockists amid restricted buying, driven by a steep fall in overseas markets.
After completing four days of gains, gold prices spurted here by Rs 400 today to regain the psychological level of Rs 28,000 per ten grams on sustained seasonal buying amid a firming global trend.
Ten years ago, gold was selling at well below its long-term inflation-adjusted average, and the integration of three billion emerging market citizens into the global economy could only mean a giant long-term boost to demand.
Gold loans are a quick, easy and low-cost way to meet your immediate and emergency financing needs, but do ensure that you entrust your gold in safe hands after thorough due diligence, suggests Gaurav Gupta, founder and CEO, MyLoanCare.in.
Gold prices dropped at the bullion market on Thursday on selling by stockists and traders following mute demand due to prevailing high prices and lower global cues.
A dedicated physical gold exchange could lead to standard gold pricing in India.
According to its owners, its value has multiplied several times over the years, because of the record gold price now.
Bullion in the Asian region gained as much as 0.5 per cent to $1,222.47 an ounce, its highest level since May 19, as the euro extended its 2.4 per cent decline against the dollar last week.
Globally, gold prices slipped by 0.26 per cent to $1,246.20 an ounce in early trade in London.
The direction of gold prices will depend on central banks, bullion banks and leveraged hedge funds.
Traders said sustained buying by stockists to meet the festive and marriage season demand mainly helped gold prices to extend gains for the second session.
Demand to remain high with festive season ahead and ongoing price fall
Globally, gold climbed 1.85 per cent to $1,230.70 an ounce.
Traders said lack of buying support from retailers and jewellers who preferred to keep their activity restricted, anticipating further fall in coming days, mainly kept gold prices unchanged.
Government on Friday hiked the import tariff value on gold and silver to $433 per 10 grams and $699 per kg, respectively, taking into account the volatility in the precious metals' global prices.
Silver also eased by Rs 320 to Rs 35,780 per kg.
The government on Friday raised the import tariff value of gold to $461 per ten grams and of silver to $803 per kg as prices of the precious metals touched all-time high this week.
Sentiment in gold improved as stockists and retailers indulged in fresh buying at existing lower levels.
Bullion traders said besides increased buying by jewellers and retailers to meet festive season demand, a firming global trend amid escalating tensions over Ukraine has raised demand for a safe-haven, resulting into influence on gold prices here too.
This has steered a rally in global equities and dollar Index also ticked higher, trading near its four year high.
In Q1 2010, India was the strongest performing market as total consumer demand surged by 698 per cent to 193.5 tonnes.
Silver, however, fell for the third straight session by losing Rs 200 to Rs 43,800 per kg on lack of buying support from coin makers and industrial units.
Traders attributed the rise in gold prices to increased buying by stockists and retailers to meet the wedding season demand.
It's good for diversifying portfolio and saving for long-term goals
Joe Foster spoke recently with Mike Norman about the rising price of Gold and presented his analysis of the Gold market.
Both gold and silver made a smart comeback and recovered by Rs 55 per 10 gram and Rs 100 per kilo, respectively, on the Bullion market in Mumbai on Wednesday on revival of heavy stockists' buying boosted by rise in the global prices.
With gold prices on the rise, financial institutions are trying different ways to attract the customer.
Rising bullion prices was no deterrent to the Indian gold jewellery segment in India as sales soared in the third quarter of the current fiscal (Q3).
'As the markets are expected to remain jittery in the near term, we advise investors to use this opportunity to enter quality largecaps from a long-term perspective.'
Tinesh Bhasin explains the pros and cons of trading in gold 'options', which were introduced in India this Dhanteras
While gold surged by Rs 230 to Rs 28,480 per 10 grams, silver gained Rs 250 to Rs 44,600 per kg on increased offtake.
However, silver extended its weakness for the second straight day and lost Rs 90 to Rs 45,230 per kg on reduced offtake by industrial units and coin makers.
Taxpayers seeking to save tax from the sale of gold (including inherited) should reinvest the capital gains in residential property to avail of the benefit provided by Section 54F.
Traders said sluggish demand at prevailing higher levels amid a weak trend in Asian region mainly led to decline in gold prices while increased industrial demand helped silver to trade higher.
Gold prices retreated sharply from its overnight new record high at the domestic bullion market on the back of heavy unwinding by stockists and traders, triggered by sharp fall in international markets.
In Mumbai, gold traded higher at Rs 30,330 per 10 grams and silver traded lower at Rs 44,400 per kg.
Diamonds offer higher returns in terms of investment compared to gold contrary to general perception, GIA said.
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